A licensee must obtain a signed document from a buyer before performing any acts as a buyer's representative. What is this document called?

In the context of real estate transactions, the document that establishes a formal relationship between a buyer and a real estate licensee, allowing the licensee to act as the buyer's representative, is known as a buyer's broker agreement. This agreement outlines the rights and responsibilities of both the buyer and the broker, ensuring that the licensee is legally authorized to represent the buyer’s interests during the home-buying process.

Having this signed document is crucial as it establishes a clear understanding regarding the scope of services to be provided by the broker and the obligations of the buyer, including any compensation or commission details. This formal representation is essential for protecting the buyer's interests and ensuring compliance with state laws governing real estate practices.

Other documents mentioned, like a buyer's proposal or purchase agreement, do not serve the same purpose. A buyer's proposal might outline the buyer's intentions or terms of purchase without necessarily granting representation, while a purchase agreement is a contract for the sale of a property itself, which comes into play only after a decision has been made. The buyer's contract, while somewhat related, may not specifically imply the agency relationship that the buyer's broker agreement establishes. Thus, recognition of the buyer's broker agreement as the necessary document is aligned with the